11 Assets that can make you RICH
The author of famous book “Rich Dad Poor Dad” Mr. Robert Kiyosaki has defined ASSETS as anything that puts money in your pocket and a liability is anything that takes money out of your pocket. He says a big house in which you are living is not an asset as you have to pay for its maintenance and if same house is rent out it become Asset; it is now giving you rental income. There is a rule of thumb: Investing in assets makes you RICH; but you need to know which assets you need to invest in, following are the 11 assets that can make you RICH if you strategically invest in them:
- Real Estate: According to research the most no. of people have become millionaires by investing in Real Estate. It is probably the only asset for which both Rich and middle class believe that it can generate a huge wealth. Real Estate is also one of the most popular assets which can generate passive income through rental income. Its price increases in long term makes it more valuable. Although there is a notion that in Real Estate only Rich can invest, this is not true. With planning, middle and salaried class can also invest in it and generate wealth. There are small tickets of a particular property called REITs are used to invest with an amount under Rs. 500 in Real Estate.
- Owning a Business: There is no denying of fact that World’s richest people are from businesses. It is high risk, high return asset and requires time and patience to grow. But you can start with small business, initially don’t think of investing in Business model which requires high capital and have high risk. In this online era you can start your business with very less capital and if you provide a “Value” to society you can multiply it no time.
- Stocks: If you can’t own a whole business, own a share of it. Stock market gives you the opportunity to invest in companies which you think are profitable and can grow in future. Even the Richest persons in the world own the stocks of different companies which has potential to grow. You need a right mindset to invest in stocks. When an average person buy an expensive Apple phone at same time a Rich mind set person buy the Apple shares. Just research and pick some good stocks to invest it will generate a huge wealth over the time.
- Skill set: This asset is very less discussed but one of the most valuable assets. Investing in this asset will surely gives you high return with almost no risk. The best examples who became billionaires by investing in this asset are: Sundar Pichai, Satya Nadella, Tim cook etc. These people have not started any business or start up but from their skill p performance they reached to the top think tank of biggest giants. Just invest and build u your skills that no one can match, you will reach to top over the time.
- Bullion: Bullion is gold and silver in its pure form, in short the investment in precious metals, Gold and Silver, in its pure form of bars and coins. It is the oldest form of investment and it will remain an investment even in future too. It is real physical money which is accepted all over the World. This investment is also use to minimise the risk and for hedging other investments. Whenever recession comes the value of other assets go down but Gold and Silver value increases.
- Index funds: Index funds are indirect way to invest in top few companies of Stock Market of Indices like Nifty 50 and Sensex. Stock investing needs a thorough research for sector selection, picking stocks, entry and exit points and many more. Many people don’t have this much time and knowledge and best way is to indirectly invest in Stocks through Index funds. It is a peaceful way of investing and best thing about this asset is that it will sure shot make you Rich in long-term. You just need patience and commitment to keep investing in Index funds for long-term. Long-term index investing has the highest success rate for taking middle class people to Rich. This is the reason Warren Buffet always favors the Low-cost index funds for most of the investors who don’t understand the other complex asset class.
- Intellectual property: Intellectual property comprises of Patents, Copyright, Trademark, Licensing etc. Investing in this asset class is quite underrated for generating wealth; by creating or investing in these assets will give you recurring income mostly whole of your life. Bill Gates’ company Microsoft has licensed all its softwares; whenever any of this software installed in any computer they get commission on it. Now you can imagine that how much Microsoft is generating Revenue by its one time investment of creation of these softwares. Intellectual property can be built at small level too and there are thousands of people at individual level earning passive income every year. The Copyright and licensing of translation work, unique logos, gaming apps, unique music tunes, unique product designs etc. can be done at individual level by investing one time in it.
- Content creation: Content creation is becoming more popular and many people trying to create content which can appeal to mass. Content can be of any type like songs, films, comedy videos, educational videos, food and fitness etc. As the penetration of internet is increasing, in same proportion content on internet is also increasing. The social media platforms like Youtube, Instagram, facebook etc. have given a good opportunity to people to reach their audience. Once you create Content and if it is consumed, you can earn for a longer duration till that Content relevant to people. The good thing is that every person can earn from Content creation as every person is good in one or the other area.
- Brand Equity: This is a most valuable intelligible asset. It cannot be built overnight; it requires time, money and people to build a Brand. To get returns from this asset you need a long term vision, commitment and strategies t. A Brand is made through winning the Trust of people. Apple, TATA, Reliance etc. have build the trust of people over the period and made their brands. In this digital era using digital marketing tools many people at individual level has build their brands at small scale in a particular niche. One must try to invest in this asset as its returns are very good.
- Physical machinery & equipment: Any product which you use for generating income is asset for you. For example you have a car and you rent it, you have machinery which makes a finished product which can be sold and any web servers, web hosting, computers that are used for digital marketing. These all helps you in generating income; sometimes directly and mostly indirectly. Investment in these assets is a good option for generating Wealth.
- TIME: The most important asset you have to build and if don’t build this asset you cannot invest in any of the 10 assets above. By saving your time and investing it in real work is the process of building asset TIME, simple. If you are traveling in public transport to your work place and purchasing a vehicle can save your good amount of time just purchase that. Save your time wherever you can, outsource operational and manual work even it required some investments. You have 24 hours a day if you make good use of it, you will be on path Wealth generation in no time.